Business & Finance Taxes

Can Prescriptions Be Written Off on Taxes?

    Considerations

    • In order to deduct medical expenses, such as prescriptions, you will need to itemize your deductions rather than take the standard deductions. Other medical expenses that can be deducted along with prescriptions include doctor visits, hospital expenses, chiropractor visits, contact lenses, eye glasses, dental expenses, medical insurance premiums, special education tutoring, physical therapy and transportation costs incurred while traveling to see doctors.

    Significance

    • You can only deduct the amount of your medical expenses that exceeds 7.5 percent of your adjusted gross income. Thus, according to the IRS, if your income is $40,000, you can only deduct those expenses in excess of $3000. If you are unsure of the total amount of money spent on prescriptions, ask your pharmacy for an end-of-the-year statement.

    Expert Insight

    • According to the IRS, you can deduct the cost of any medical expenses you paid during the tax year for yourself, your spouse and your legal dependents. You also may be able deduct medical expenses paid for other immediate family members. You cannot, however, deduct medical expenses that were paid by your insurance plan

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